Going solar makes sense in sunny South Carolina. If you live in the low country and are thinking of installing solar panels on your roof, then you have come to the right place! We have compiled a list of everything you should know about going solar in South Carolina.
Solar Tax Credits in South Carolina
South Carolina provides some of the best solar tax credits in the country. When you install a home solar energy system in South Carolina, you can claim a state solar tax credit of 25% the purchase and installation costs. The maximum credit that can be applied in a single tax year is $3,500 or 50% of your state tax liability, whichever is less. Also, unused credits can be carried forward for 10 years.
In addition to the 25% state tax credit, the federal government extends a 30% solar tax credit, so in South Carolina you can receive a whopping 55% off your home solar system. When you apply those massive tax credits, you’ll actually make money in the first year. There is also no cap on the federal tax credit in SC and any home within the Duke Energy territory can receive a rebate that reduces the amount of ITC you can claim. This means you can deduct a larger tax credit when you go solar in the Palmetto State.
These great available solar tax credits in SC make solar panel installation a great investment. Solar homeowners will see returns on day one and continue to put money back in your pocket.
Solar Loans in South Carolina
If you live in South Carolina and want to switch to solar energy, you don’t have to have thousands of dollars laying around to pay for your solar energy system. As long as you own your home, you can still have a home solar power system installed and reap all the benefits of solar energy.
Using a loan to pay for your solar system in South Carolina is like investing in a business that is definitely going to succeed, all while earning you a tax break in the process. You’ll end up with two tax credits and still experience a nice profit over the lifespan of your system.
Solar Ownership in South Carolina
Purchasing a solar energy system outright provides the biggest financial return. Owning your solar system allows you to generate positive cash flow in the short term and increases the value of your home. Your rooftop solar panels will also generate enough energy to drastically reduce your power costs, saving you money. Solar ownership offsets your power costs — enough to save you hundreds of dollars the first year and the savings continue from there.
Another benefit of solar ownership in South Carolina is that you are locked in at cheaper rates than the utility power rates so you never have to worry about the rising cost of energy again.
Net Metering in South Carolina
Net Metering is an important policy in solar energy. Net Metering refers to the agreement made between solar producers and their local electrical utility. This agreement allows solar owners to buy and sell energy in what is called “electric credits.” For example, solar panels on your roof may produce more energy than your house uses during the daylight hours. When your home is net-metered, the energy meter will run backwards and provide a credit against what energy is expended at night or any other time when your home’s power use exceeds the solar panels’ output. So, when you receive your monthly electricity bill, you only pay for the ‘net’ total of energy used from the utility grid minus the energy sold back to the power company.
The statewide net metering policies in South Carolina assert that residential solar customers can install solar systems up to 20kw in capacity and the solar panels must be installed to meet all interconnection and safety standards. The utility companies in South Carolina must roll over your monthly excess solar output to the next month and pay you for your annual surplus at the end of the year.
If you live in South Carolina and want to install home solar panels on your roof, now is the best time! South Carolina offers stellar solar tax credits, great loans and solar ownership opportunities. Interested in finding out more solar information? Please give Palmetto Solar a call (855) 339-1831.